Strategic Planning, Leadership, and Expansion of Coach House Hotel

This report provides a comprehensive strategic analysis of the Coach House Hotel, focusing on its internal and external environments. It utilizes PESTLE, Porter's Five Forces, and SWOT analyses to assess the hotel's position in the hospitality industry. The report examines various leadership styles, particularly contrasting autocratic and democratic approaches, and their impact on employee satisfaction and organizational performance. Furthermore, it explores strategies for the hotel's expansion, including diversification and market positioning. The analysis highlights the importance of adapting to external factors, such as economic and social changes, and the need for effective leadership to drive employee engagement and customer satisfaction. The report concludes with recommendations for improving the hotel's strategic planning and achieving sustainable growth in a competitive market.

Strategic Planning for Hospitality
Industry

TABLE OF CONTENTS
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
1.1 Internal and external factors ..................................................................................................3
1.2 Leadership style.....................................................................................................................6
1.3 Strategy for expansion of Coach House Hotel.......................................................................8
1.4 Effectiveness of diversification............................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12
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INTRODUCTION
Strategic planning is the process of creating effective strategy in order to accomplish
objective of the organization. It is the systematic approach in which managers of the organization
set priorities, focus on resources, ensure working of employees in fulfilling the long term goal of
the companies (Volgger and Pechlaner, 2014). Hospitality industry is one of the fastest growing
sector that contributes well in the economic development of the nation. Present report is based
on the case study of Coach House Hotel. Though cited firm is working since long time but still it
has not reached to the satisfactory level in the hospitality industry. Current assignment will
discuss the PESTLE, Porters 5 Forces, SWOT analyses models in order to identify the working
of the hotel. Several internal and external factors that impact on hotel performance will be
illustrated in this study (Okazaki and et.al, 2015). Leadership styles and its effectiveness in the
workplace will be discussed in this report.
MAIN BODY
1.1 Internal and external factors
PESTLE analyses (External factors)
PESTLE analyses is the model that can help in understanding the external factors that
affect the business performance of the organization to great extent. It is a strategic analytical tool
that supports in knowing the potential effects of external environment in the company's
performance (Dwyer and et.al, 2014). Several external factors are discussed as below: Political factors: Political stability is the major factor that influence the success of
industry. It is the components that can influence the visitors, tourists direct or indirect
way. For instance if in the nation there are stable government then maximum people will
found it safe and they will plan the tour in particular countries (Strumickas and
Valanciene, 2015). On other hand if in any area there are high terrorism attacks then
people do not take interest to travel in particular location. Coach House Hotel business
performance gets influence by this component to great extent. Coach House Hotel is
located in the large town in the east of country. In case of political instability in the
nation traveler will not take interest in coming in this location thus revenues of the
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organization can get reduced to great extent. People feel that they are unsafe because
government has no concern for the travelers (Galliers and Leidner, 2014). Economic factor: It is another external factor that impacts on entire hospitality industry to
great extent. Business of Coach House Hotel is getting down because of fluctuation in
currency and economic condition of the nation (Ryan, 2015). In the year of 2008 in
United Sated big down fall have taken place due to this recession have taken place. It has
affected the overall business of hospitality industry to great extent. Debt crises etc has
created situation of recession in the nation. In such condition exchange rates, interest
rates, etc. get costly. That decreases mind of traveler and they do not spend amount in
traveling. Related problem faced by the Coach House Hotel if exchange rates get
increased. It discourages Americans and foreign tourists and they do not take interest in
visiting destinations of US countries (Heizer and Barry, 2013). By this way number of
booking will get reduced in the cited hotel that impacts on the revenues of the
organization. Long term economic threats enhances the situation of income inequality for
the middle class and lower class people majorly and by this way they loss their ability to
travel and stay in the hotel (Dwyer and et.al, 2016). Social and cultural factors: It is one of the major factor that impact on the business of
Coach House Hotel. Cited firm does not focus on the cultural aspects, needs and
preferences of the customers. Company provides services to the guests as per their own
norms it does not pay attention on the belief of travelers. Age, income and other
demographic factors influence the mind of visitors (Goyal, Rahman and Kazmi, 2013).
Young population like to travel and they stay in sch hotels which offers them attractive
facilities whereas older persons do not like to travel much. That impacts on the business
performance of the Coach House Hotel. Technological factors: Today is the globalized era in which travelers first search about
the place and facility of hotels before going in any place. Coach House Hotel has not
given much detail about its services on its website and it does not use social networking
sites effectively (Ali, Amin and Cobanoglu, 2016). By this way travelers do not get
much detail about the hotel that decreases its total sales volume. That is why company
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has not reached to its satisfactory level. If cited firm uses advanced technology's then it
can enhance its revenues and can improve business of the organization. Legal factors: It is major factor that affect or impact on the business performance of
hospitality industry (Moyle and et.al, 2014). As if in any nation there are tough
legislation, strict visa policy, security issues etc. Then it may demotivates the travelers
and they will not come in the location that would affect the business performance of hotel
indirectly because number of customers will get reduced thus business of firm will be
decreased.
 Environment factor: Climate, weather, geographical condition, global changes impact on
the overall business of the hospitality industry (Kitsios and et.al, 2015). In the situation of
poor weather people do not come in the location that affect the business of the Coach
House Hotel indirectly.
Porter's five forces
Michael Porter has given the model of Porter's fiver that explains the internal and
external factors that influence the business performance of the hotels.
Competitors: There are many leading brands in the hospitality industry such as Marriott, Hilton
etc. that creates big problem the Coach House Hotel because due to brand name of these brand s
travelers do not pay attention on average hotels (Molina-Azorín and et.al, 2015). They have high
power and they can influence the mind of travelers.
Bargaining power of suppliers: In the hospitality bargaining power of suppliers are very low.
Coach House Hotel has many suppliers, power of suppliers of the company are very low.
Threats of substitute products: If consumers find better option to stay then they prefer to stay in
other hotels. Thus, this factor can influence the business unit to great extent (Saleh and et.al,
2015).
Threat of new entry: Power is depended upon the firm's ability, as hotel industry is very
expensive and to influence mind of travelers company will have to offer them attractive facilities
which is not possible thus they have low power.
Buyer power: travelers or visitors have high power and they can influence the overall business of
the hotel. If they like to stay in other hotel then it will affect the revenues of Coach House Hotel
(Rashid, Rahman and Khalid, 2014).
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SWOT analyses (Internal factors)
It is the model that describes the internal factor that influence the revenues of the Coach
House Hotel.
Strength:
 It offers facility like wedding, conferences at affordable rates to visitors.
 It is the member of marketing and trade associations that makes it powerful in the
hospitality industry.
 It organizes trade fairs, workshops and networking events which make it successful. It offers 4 star facilities to its guests (Köseoglu, Sehitoglu and Craft, 2015).
Weakness:
 Poor marketing strategies.
 Premium prices of product and services.
 Unhappy employees.
 It can arrange the small functions like wedding etc., it can not conduct big events. Domestic weekend is the drawback because people like to stay near to town so that they
can get drink facilities (Parnell, 2015).
Opportunities:
 Public interest is increasing that can help in increasing sales of Coach House Hotel. Staff members are experienced that can support in satisfying needs of guests.
Threats:
 Economic down turn
 High competition.
 Government regulations
1.2 Leadership style
Leadership is the major factor that helps in improving the performance of the employees,
their strategies can support in enhancing the business performance of the organization. There are
several types of leadership that can affect the organization to great extent (The Benefits of
Diversification. 2016).
Democratic leadership:
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It is the type of leadership in which leaders involve employees in the decision making
process. They encourage innovative ideas and engage the persons so that they feel satisfy. By
this way will contribute well in the organization that can help in increasing the business of firms.
Final responsibility is of democratic leaders but they delegate authorities to others so that people
can perform their work significantly (Kitsios and et.al, 2015).
Autocratic leadership:
Such type of leadership style is currently used by the Coach House Hotel. Leaders of the
firm takes all decisions by own and they give orders to tits staff members. Employees do not get
power to talk they just have to follow the instruction of higher authorities. According to the give
case study chef of cited firm is not happy because company make policies and change suddenly.
Decision of offering fusion menu to the guests was the sudden decision and leaders did not take
any suggestion with the kitchen staffs before implementing this. By this way employees feel
demotivated and they think to leave the jobs (Moyle and et.al, 2014). Management level people
are unable to manage the staff members, they do not concern about their opinion and force them
to follow the regulations.
Strategic leadership:
It is the type of leadership which follows by large corporations. In this, leaders focus
more on competition and try to enhance performance of the company so that it can gain
competitive advantage. Sometimes they ignore the feelings of staff members but they give
training to employees so that they can improve their level of performance and can serve effective
services to the guests. By this way hotel will be able to attract more consumers and it will
enhance the brand name of the organization (Strumickas and Valanciene, 2015).
In the hospitality industry democratic leadership is applicable. As in this sector there are
huge competition and to survive in the competitive environment firms need to encourage
innovative ideas. By engaging the employees in the decision making process hotels can get to
know about their needs and management can provide them rewards and recognition to satisfy
them. By this way they will share their innovative ideas that can help in attracting customers
towards the hotel (Volgger and Pechlaner, 2014). Employees deal with the consumers so they
know about preferences and demand of users. By engaging the workers in the decision making
process company can get to know about preferences of travelers and they can develop their
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products accordingly. That would satisfy the needs of guests and it will give success to the
organization to great extent.
In the modern globalized era to sustain in the competitive environment it is necessary that
company satisfy its staff members because satisfied workers can stay in the company for longer
duration. By this way they will serve the consumers well and make them happy. It will create
unique brand image of the organization in the hospitality industry. Thus, democratic leadership
is best suited to the hotel sector but Coach House Hotel is applying autocratic leadership in the
workplace (Ryan, 2015). It does not involve its workers in the decision making process.
Managers introduce any policy anytime without giving any prior information to the staff
members. That is why staff members are not happy. It is necessary for the cited firm to involve
its workers in the decision making process, by this way they will loyal and they can share their
feelings with the management level persons (Okazaki and et.al, 2015). That wold help in
reaching to satisfaction level that will attract more consumers towards the brand and it will help
in increasing revenues of the hotel.
1.3 Strategy for expansion of Coach House Hotel
Coach House Hotel is needed to expand its business so that it can communicate with
mass audience and can enhance its number of consumers. Expansion is the great strategy that
assist in achieving the goal of the company (Strumickas and Valanciene, 2015). It can give
global presence to the entity and can improve its business performance to great extent. Several
growth strategies are described as below:
Mergers:
It is the great concept that can be used by the Coach House Hotel that can help in
increasing business of the firm and it can improve its performance too. Cited firm can merge
with the other big corporation which is working tremendous in the hospitality industry (Ryan,
2015). In this both firms have to make a legal contract and it is necessary that both give their
positive concern to accept terms and condition of agreement. In the merger risk is shared
between both parties and both are entitled to get profit. For instance if Coach House Hotel wants
to enter in the Indian market then by merging with Indian hotel cited firm will be able to
establish its business in the new market (Ryan, 2015). Local support will help in knowing the
requirements of the costumers thus company will be in position to deliver them satisfactory
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services. That will enhance its brand name and that can attract consumers towards the hotel.
Merger strategy can support the Coach House Hotel in filling the gaps of services and cited firm
will offer addition services to clients of the hotels (Dwyer and et.al, 2016).
Acquisition:
Coach House Hotel is facing the problem of lack of experience staff members, that
causes problems in service delivery. With the help of acquisition with other hotel Coach House
Hotel will be able to acquire talented staff members that can serve better to consumers and those
who are having great experiences in the field. They will serve better to consumers by this way
company will be able to grow well (Heizer and Barry, 2013). This strategy will bring great
opportunity for the Coach House Hotel because that will reduce marketplace confusions and it
will give strength to the brand image in the global market to the cited firm. Acquisition is the
term in which entities acquire small firms, they acquire staff and operations of small hotels. That
enhance value of market share of the company and attract more visitors towards the hotel
(Dwyer and et.al, 2014).
Divestment:
It is the retrenchment strategy which is used by the entities when they wish to downsize
the scope of business. In this, firms chooses to eliminate the unprofitable , unmanageable
operations from the workplace. There are so many reasons of divestment such as small market
share, availability of better options, need of increasing investments etc (Dwyer and et.al, 2016).
As Coach House Hotel is not performing well, cited firm has invested huge amount for
improving its operations but still it has not reached to its satisfactory level. This strategy would
be better for the cited firm by this way it will be able to manage its cash outflow. By this way
capital will be managed and unprofitable products may get eliminated from the operations. That
would give huge success to the hotel and will help in accomplishing its objective soon. By this
way profit of the organization can get enhanced and it will be able to provide consumers
effective services (Molina-Azorín and et.al, 2015).
Diversification:
It is another strategy that can help the Coach House Hotel is expanding its business to
great extent. It can be applied when organization wants to develop its products or want to expand
its business in the new market (The Benefits of Diversification. 2016). It can be used as growth
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strategy , it involves market penetration, product development, market development and
diversification. Ansoff matrix is the model that helps in the growth of the entities. In this Coach
House Hotel can analyses the needs of its consumers and can develop its products accordingly.
That would help in attracting more visitors because they will be able to satisfy the needs of users
(Parnell, 2015). That would increase sales volume of the company and it will help in the growth
of the hotel.
Franchising:
Small or big corporation use this strategy to expand their business. It is the strategy in
which firms need not to invest huge amount for the expansion. It helps in increasing profit of the
organization to great extent (Köseoglu, Sehitoglu and Craft, 2015). It enhances visibility of brand
and gives global presence to the organization. Coach House Hotel can use this option as well that
can help in accomplishing business objective of the hotel significantly.
Coach House Hotel should go with diversification strategy, it can help in giving success
to the entity. Cited firm can expand in new market and can make connection with the other
consumers (Parnell, 2015). By this way sales of the company can get increased that would
increase its brand image and it will support in the growth of the hotel.
1.4 Effectiveness of diversification
Diversification is the great strategy that can help in increasing business of the Coach
House Hotel to great extent. This concept can support the hotel in accomplishing its objective
soon. Cited firm can enter into new market that can be termed as geographical diversification
(Molina-Azorín and et.al, 2015). By this way number of customers of the company can get
enhanced that would increase revenues of the hotel to great extent. Hotel can implement this
strategy by following way: Market research: Coach House Hotel has to first research the market, it has to analyses
the needs and desires of population so that it can modify its operations accordingly (Ali,
Amin and Cobanoglu, 2016). By this way it will be able to identify the growth
opportunities in this new market. That will support in identifying the drawback of the
system and cited firm will be able to modify its products as per the needs of guests. Resource allocation: Once potential of market and needs of visitors is analyzed then
Coach House Hotel will have to allocate the resources accordingly (Heizer and Barry,
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2013). It will have to hire the staff members those who are capable to do well. By this
way talented staff members will be able to perform well in the new geographical area.
Management has to decide the budget and they have to arrange all activities accordingly. Engaging staff: Once resource is being allotted then cited firm need to enhance
participation of employees, so that they can share their innovative ideas with the
managers. That can support in increasing business of the hotel in new location (Ryan,
2015). Monitor growth: Higher authorities have to monitor the growth time to time, if they find
any mistakes then they can modify the functions. By this way Coach House Hotel will be
able to expand its business and it will give growth to the hotel (Goyal, Rahman and
Kazmi, 2013). Final implementation: In the final phase cited firm will have to finally implement the
strategy in the new market.
Effectiveness of diversification strategy
Limiting risk:
It is the great strategy that can help Coach House l in accomplishing its objective soon.
With the help of this cited firm will be able to limit its risks. By this way investors will be
confident and they will invest their money in the business unit (Moyle and et.al, 2014). That can
support in expanding business operations and that can give huge success to the hotel. It will
minimize the risk of failure to great extent.
Maximize returns:
As Coach House Hotel has not achieved satisfactory level till date. By expanding its
business in new geographical location hotel will be able to make connection with new customers.
By this way sales volume of the cited firm will get enhanced (Parnell, 2015). That will give
success to the organization and it will increase revenues of the entity.
Enhance brand name:
By diversification Coach House Hotel will be able to expand and it will give global
presence to the hotel. That can create positive image in the mind of consumers and they will get
attracted towards the brand (The Benefits of Diversification. 2016). This brand name will attract
more travelers and cited firm will be able to offer them attractive services.
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Capital preservation:
Diversification is the great strategy that can help in preserving the capital of the firm.
That would give success to the hotel and it will definitely help in achieving goal of the
organization (Heizer and Barry, 2013).
CONCLUSION
From the discussion it can be concluded that strategic planning is the great concept that
supports entities in gaining success. Effective strategies and systematic process supports the firm
in expanding its business ell. From the discussion it is found that Coach House Hotel is offering
poor services to its guests. Cited firm needs to improve its services and products so that people
can feel satisfy and they get attracted towards the brand. Report has also indicated that staff
members of Coach House Hotel are not satisfied so company needs to motivate them and have to
encourage them so that they share their views and perform well in the workplace. It will support
to reach in the satisfaction level and in gaining competitive advantage to the entity.
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